Sri Lanka’s Litro ventures in to manufacturing oxygen to meet increasing demand
Litro Gas Lanka Ltd. Has reportedly announced plans to venture into the manufacture of oxygen due to the increasing demand for oxygen supplies as the Covid-19 pandemic spreads.
As stipulated by the Board of Directors, Litro has stated that a modern oxygen manufacturing plant and distribution network would be set up on the 25-acre land in Kerawalapitiya.
According to the company, the move was also in line with assurances from Sri Lanka’s President Gotabaya Rajapaksa that there won’t be a shortage of oxygen.
The President had also directed Presidential Task Force Head Basil Rajapaksa to set up an oxygen plant and provide a seamless supply of oxygen.
Accordingly, Litro has secured a 25-acre land area from the Sri Lanka Land Development Corporation (SLDC) and an agreement to this effect was signed recently.
According to reports, Litro Gas Lanka has already made a deposit of Rs. 500 million, in keeping with the State valuation of the land, as an advance payment towards the purchase of the land.
The deposit was presented by Litro Gas Chairman and CEO Anil Koswatte to SLDC Chairman Maj. Gen. M.R.W. Soysa.
Litro has announced through the local media that at present, companies supplying oxygen to the market are capable of meeting the current daily requirement for 90 metric tons. However, Litro’s move is expected to further augment this capacity to meet extra demand that will likely arise as a result of the pandemic.
“We plan to undertake this nationally critical venture under the aegis of the Presidential Task Force and will contribute towards providing the much-needed support for the country’s COVID-19 affected hospital network,” Koswatte has been quoted as saying.
OSL take:
Sri Lanka’s health sector is a potential business/investment opportunity in the country that has not been fully exploited. The government of Sri Lanka is also working towards harnessing its full potential by taking measures to expand pharmaceutical manufacturing capacities in the country. A dedicated pharma zone has already been declared for the purpose. Sri Lanka is to commence the local manufacture of the Chinese anti-Covid 19 vaccine, Sinovac, from next month. It is in this backdrop that the country is now looking at setting up an oxygen plant to meet the growing demand. Foreign businesses/investors could therefore explore business/investment opportunities in Sri Lanka’s health sector.
| Article Code : | VBS/AT/20210611/Z_5 |